Dubai: A proposed law that could limit Indian immigration to the US shook Indian tech companies yesterday, hitting stock prices hard.
The proposed bill on the H1-B visa that allows US companies to employ foreign workers, is expected to have an adverse impact on hiring plans of IT firms, including their financials. The legislation calls for doubling the minimum salary of H1-B visa holders to $130,000 from the current $60,000. India got 72% of the H1-B visas issued last year.
The bill, expected to be signed by President Donald Trump, would make it difficult for firms like Infosys, Wipro and Tata Consultancy Services to use the programme to replace American staff with foreign workers, including from India, with lower wages.
“A hike in the H1-B visa cost will have significant impact on the financials…,” Mumbai-based Angel Broking said. “Depending on the companies, they could Mobilbahis easily witness around 60-70 per cent rise in the salaries of the H1-B visa dependent workforce and hence have significant impact on the net profit of the companies,” the brokerage said.
On a single trading day yesterday, the IT majors lost Rs330 billion or nearly $4.4 billion in market value, after their shares slumped between 1-4.5 per cent.
New Delhi yesterday said it has conveyed its concerns to the US over the proposed bill.
What is an H1-B visa?
H1-B is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. Technology companies depend on it for hiring tens of thousands of employees each year.
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